How are IEX collar max profit and max loss calculated?

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the IEX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $1,148.50 per contract and the computed maximum loss is -$851.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IEX collar?

The breakeven for the IEX collar priced on this page is roughly $228.52 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current IEX market-implied 1-standard-deviation expected move is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IEX implied volatility affect this collar?

IEX ATM IV is at 24.70% with IV rank near 3.70%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

IEX Collar Strategy

IEX (IDEX Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

IDEX Corporation is an international enterprise specializing in engineered solutions across diverse sectors. The company operates through three primary business units: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT division is responsible for the design, production, and distribution of a range of fluid-handling equipment, including positive displacement pumps, flow meters, and injectors, alongside offering flow monitoring and related services. Its applications span the food, chemical, general industrial, water management, agricultural, and energy industries. Under the HST umbrella, IDEX develops and supplies precision components and systems for health and scientific applications. This includes advanced fluidic devices, various types of pumps (rotary lobe, centrifugal, positive displacement), roll compaction and drying technologies, pneumatic components, and sealing solutions, as well as biocompatible medical devices, optical components, and precision photonic solutions.

IEX (IDEX Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $16.82B, a trailing P/E of 33.25, a beta of 0.99 versus the broader market, a 52-week range of 157.25-230.18, average daily share volume of 707K, a public-listing history dating back to 1989, approximately 9K full-time employees. These structural characteristics shape how IEX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.99 places IEX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IEX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on IEX?

A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.

Current IEX snapshot

As of June 30, 2026, spot at $226.47, ATM IV 24.70%, IV rank 3.70%, expected move 7.08%. The collar on IEX below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this collar structure on IEX specifically: IV regime affects collar pricing on both sides; compressed IEX IV at 24.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $16.04 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on IEX should anchor to the underlying notional of $226.47 per share and to the trader's directional view on IEX stock.

IEX collar setup

The IEX collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With IEX near $226.47, the first option leg uses a $240.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IEX chain at a 17-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 IEX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$226.47	long
Sell 1	Call	$240.00	$0.73
Buy 1	Put	$220.00	$2.78

IEX collar risk and reward

Net Premium / Debit: -$22,851.50
Max Profit (per contract): $1,148.50
Max Loss (per contract): -$851.50
Breakeven(s): $228.52
Risk / Reward Ratio: 1.349

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.

IEX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on IEX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$851.50
$50.08	-77.9%	-$851.50
$100.16	-55.8%	-$851.50
$150.23	-33.7%	-$851.50
$200.30	-11.6%	-$851.50
$250.37	+10.6%	+$1,148.50
$300.45	+32.7%	+$1,148.50
$350.52	+54.8%	+$1,148.50
$400.59	+76.9%	+$1,148.50
$450.66	+99.0%	+$1,148.50

When traders use collar on IEX

Collars on IEX hedge an existing long IEX stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.

IEX thesis for this collar

The market-implied 1-standard-deviation range for IEX extends from approximately $210.43 on the downside to $242.51 on the upside. A IEX collar hedges an existing long IEX position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current IEX IV rank near 3.70% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on IEX at 24.70%. As a Industrials name, IEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IEX-specific events.

IEX collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. IEX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IEX alongside the broader basket even when IEX-specific fundamentals are unchanged. Always rebuild the position from current IEX chain quotes before placing a trade.

Frequently asked questions

What is a collar on IEX?: A collar on IEX is the collar strategy applied to IEX (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With IEX stock trading near $226.47, the strikes shown on this page are snapped to the nearest listed IEX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IEX collar max profit and max loss calculated?: Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the IEX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $1,148.50 per contract and the computed maximum loss is -$851.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IEX collar?: The breakeven for the IEX collar priced on this page is roughly $228.52 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current IEX market-implied 1-standard-deviation expected move is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on IEX?: Collars on IEX hedge an existing long IEX stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
How does current IEX implied volatility affect this collar?: IEX ATM IV is at 24.70% with IV rank near 3.70%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.